EnvironmentA second operating systemDevoted to design and implementation of strategyAgile, network structureIt’s own set of processesComplements the traditional hierarchyContinually assesses the business operating environment and responds to challenges with greater agility, speed and creativity

5 principles for the new operating systemMany change agentsNot just the few usual appointees10% of managers and employees is possible and plentyA want-to and get-to mindsetEnergised by the desire to work with others towards a shared purposeHead and Heart, not just headNeed to engage discretionary effort (do the network job as well as the hierarchy job)

What’s wrong with the old way of working?Not good at handling rapid changeInherently risk averse and resistant to changePeople fear loss of power and stature as a result of changeNot effective when handling significant changes where the end-point not fully understood or communicated

Gary Mahood“Accelerate”Themes from the HBR article by John P. KotterThe most agile innovative companies add a second operating system, built on a fluid network-like structure to continually formulate and implement strategy.John P. Kotter

Much more leadership, not just more managementAbility to set vision, inspire action Two systems, one organisationNetwork and hierarchy must be inseparableThe strategy network meshes with the hierarchy as an equalCritical to heighten awareness of organisation’s need for continual adjustment of strategy Must focus on area of greatest opportunityCan be used to galvanise the volunteer army

1. Create a sense of urgency around a single big opportunity8 Accelerators2. Build and Maintain a guiding coalitionThis group is the core of the strategy networkShould represent each of the hierarchy’s departments / divisions and levelsRequires at least some outstanding leadersThere is no internal hierarchy in the guiding coalition – all members are equal

Strategic vision should be focused on taking advantage of the big opportunityShould be emotionally appealing as well as strategically smartStrategic vision should be drafted by the guiding coalition but reviewed by the executive committee of the organisationGuiding coalition should develop a small number of initiatives tied to achieving the vision

3. Formulate a strategic vision and develop change initiatives to capitalise on the big opportunity4. Communicate the vision and the strategy to create buy-in and attract a growing volunteer armyCommunication in a vivid and memorable way is vitalCreativity and passion required to mobilise the volunteer army around the message10% of total employee population is enough to launch the network

5. Accelerate movement toward the vision and the opportunity by ensuring that the network removes barriersMembers of the network actively search out issues that are preventing people from being effective in achieving the missionGroups are autonomously formed within the network to tackle issuesDesign and implementation of changes happens in the network and is instituted within the hierarchy

6. Celebrate visible, short term winsSuccess breeds successCelebrate successes that are clear, unambiguous and that obviously relate to the vision

If you take your foot off the gas – cultural and political resistance will ariseKeep adapting the strategy to fit with the shifting business realitiesContinuous focus is required to keep the volunteer army engaged and working on network activities

7. Never let up. Keep learning from experience. Don’t declare victory too soon.8. Institutionalise strategic changes in the cultureNo strategic initiative is complete until it has been incorporated into day-to-day activitiesThis is best achieved by ensuring that the positive results are visible and contributing to a strategically better future